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7. Prepare a Budgeted Manufacturing Cost per unit budget. Refer to exhibit 9-11 for guidance. To calculate FMOH/unit calculate total FMOH for the year and

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7. Prepare a Budgeted Manufacturing Cost per unit budget. Refer to exhibit 9-11 for guidance. To calculate FMOH/unit calculate total FMOH for the year and divide this by budgeted production for the year. The total production volume for the year is budgeted at 720,000 bags Prepare a Budgeted Income Statement for the quarter for GBCoffee. Assume interest expense of $0, and income tax expense of 21% of income before taxes. 8. materials - coffee beans and packaging. GBCoffee is preparing budgets for the fourth quarter ending December 31, 2019. For each requirement below prepare budgets by month for October, November, and December, and a total budget for the quarter. The previous year's sales for the corresponding period were: October November December January February 50,000 bags 55,000 bags 90,000 bags 75,000 bags 60,000 bags 12 Sales Budget 4th Quarter 5 Sales in the Previous Year 16 Muitply by Current Year Increment (86 17 Expected in Current Year 18 Mutiply by Sales Price per Case 19 Total Sales Revenue 195,000 800% S 1950 210600 19.50 1950 $ 1950 S 19.50 S 21 Type of Sale 22 Cash Sales (35%) 23 Oedt Sales(65 %) 3500% $ 364550.00 s 405405.00 $ 663,39000 $ LAa7,34s00 $ 552a25.00 s 442.26000 65.00% $ 684,450.00 $ 752.895.00 $ 1,232,010.00$ 2665355.00 $ 1,02667500$ 821,54000 S 1,526,850.00 $ 1.15.00.00 $ 1,805,40200 410670000 S 1,57330000 $ 1,2sM0000 123201000 Total Sales Revenue Production Bugt October December 4th Quarter febuary (Partial) Unit Sales 7,200 81,000 Plus: Desired Ending inventory (10% total Needed 10.00% 8100 218200 9,120 87,480 Less Begining inventory of M (53So Number of Units Produced s150 213350 Direct Materials Budget (Green Coffee Beans) Month 4th Quarter January 8 Units to be Produced (tfrom budget production) 9 Multiply byc Quantity of DM Needed Per Unit 63,180 213,350 79,380 1.25 Quantity Needed for Production 1 Plus: Desired Ending inventory of DM 2 Total Quantity Needed 3 Less: Beginning Inventory of DM 68238 78,975 119,475 266,688 9,225 20% 19.845 84,083 326,223 13,500 15.22523325 87,075 Quantity to Purchase 273,033 5 Multiply by: Cost Per Pound 493 728 609,525 Total Cost of DIM Purchases 9 Direct Labor Budget Month November 4th Quarter 63, 180 213,350 s Units to be Produced 2Multiply by Direct Labor Hours per Unit 0.25 13,640 15,795 23.895 53,38 Total Hours Required 4 Multiply byc Direct Labor Cost per Hour Total Direct Labor Cos 20 5 32 2313 0373004 023 477.900 Manufacturing Overhead Budget arh Quarter Assumptons GBCoffee Budget Project Direct Materials Budget (Rolls of Material) OctoberNovember December4th Quarter January Units to be Produced (from budget production) Number of Bags Per Rll Quantity Needed for Production Plus: Desired Ending Inventory of DM Total Quantity Needed Less: Beginning Inventory of DM Quantity to Purchase Multiply by: Cost Per Pound Total Cost of DIM Purchases 54,590 63,180 95,580 213,350 79,380 100 100 100 100 546 632 956 1,035 940 22,550 $ 2,134 29 238 2,372 213 2,159 794 10% 63 96 609 727 5463 54 $ 24 S 24 S 24 S 15,941 $ Direct Labor Budget 4th Quarter November Month October Units to be Produced Multiply by: Direct Labor Hours per Unit Total Hours Required Multiply by:Direct Labor Cost per Hour Total Direct Labor Cost 213,350 53,338 1,066,750 63,180 0.25 15,795 2000 s 025 0.25 025 13,648 2000, s- 23,895 20 s 2000 477,900 S 315,900 Manufacturing Overhead Budget Month October 4th Quarter 0 Cases to be Produced (from Production Budget) Variable MOH Costs 2 Indirect Materials ($.10 3 Indirect Labor-Variable Portion ($.50 4 Utlities-Variable Portion ($.20) 55 Total Variable MOH 56 s0.10 5,459 S 27,295 S 6,318 $ 31,590 $ 9,558 $ 47,790 $ S 0.50 s S 0.20 S 106,675 43,672 S 76,464 S Indirect Labor-Fixed Portion 9Utlities Fixed Portion 0 Other Expenses Total Fixed MMOH 26,500 16.000 26,500 16.000 $ 41502 S 26,500 s 16,000 $ 41.500 S 26,500 S 79,500 48,000 16,000 84,000 134544 s 160,464 41,500 S 41.502 S 000 S 127672 422.690 Month Operating Expenses Budget Number of Cases to be Sold (from Sales Budget) Selling and Administrative Expenses (S1.20) Exed Operating Expenses October November December 4th Quarter 195,000 60,000 66,000 S Selling and Administrative Expenses ($60,000) 60,000 60,000 S 60,000 180,000 126,000 168,000 S 414.000 Total Operating Expenses

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